Building Details

Year Built 1981

Listing Agency: Southern Charm Homes p***@gmail.com

Listed By: Delisa Simpson-Schubert

Source: Compass

Added: May 29, 2025 Changed: Aug 29 Last Checked: Aug 29 at 3:25PM

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Investment Insights

Based on property information with market context.

This multifamily property in Luttrell, Tennessee, spans 16.169 acres and includes 11 site-built homes, with 8 currently occupied. The grounds also contain numerous pads configured for mobile homes, providing additional established residential sites.

A separate building formerly operated as a store and could possibly be converted to apartments or another use. A current survey is on file for the property at 110-145 Wenger Park Lane. The property was built in 1981, and additional acreage is available.

Key Highlights

• 16.169‑acre multifamily property in Luttrell, TN
• 11 site‑built homes included
• 8 homes currently occupied

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$71,795

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

3.59%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,435,900 $1.4M

Cap Rate 7%

$1,025,643 $1.0M

Cap Rate 9%

$797,722 $797.7K

Market Conditions

NOI Build-Up for 8,000 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$141.1K $17.64/SF

− Vacancy

−$10.6K −$1.32/SF

EGI

$130.5K $16.32/SF

− OpEx

−$58.7K −$7.34/SF

NOI

$71.8K $8.97/SF

Area

Union County, TN

Vacancy

7.50%

Lease Rate

$17.64 /SF/Yr

Expense Ratio

45.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,435,900

Cap Rate 7%

$1,025,643

Cap Rate 9%

$797,722

Alternative Uses

Best Use

Apartment 5plus

$1.03M

$897.4K – $1.20M (±1% cap)

NOI $71,795 @ 7.0% cap · market cap 3.59%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.98M

$1.73M – $2.31M (±1% cap)

NOI $138,701 @ 7.0% cap · market cap 6.94%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Multifamily properties

Suggested Use

Top Pick Auto Repair Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

5

Businesses Nearby

Explore this area Business Placement

Demographics for 37779, TN

3,812

Population

1,554

Households

2.5

Avg Household Size

43

Median Age

10%

College-Educated

86%

High-School Grad

34.6 sq mi

ZIP Area

110

Density / Sq Mi

$51,159

Median Household Income

$37,474

Median Earnings

$829

Median Rent

$160,500

Median Home Value

Market

Vacancy Rate% for Multifamily in South region

8.5% 2022

10.2% 2023

11.4% 2024

11.3% 2025

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Frequently Asked Questions

What type of property is this?

Multifamily property - Rental property portfolio with site-built homes, mobile home pads, and a former store building.

Where is this multifamily property located?

The property is located at 110-145 Wenger Park Lane Luttrell, TN.

What is the asking price?

The asking price for this property is $2,000,000.

What are key features of this property?

This property features: 16.169‑acre multifamily property in Luttrell, TN; 11 site‑built homes included; 8 homes currently occupied